Starbucks to open 500 UK sites in five years despite ‘tougher market’

Starbucks has unveiled plans to open 500 new stores across the UK over the next five years, despite widening losses and a “tougher market”. 

According to the latest accounts filed at Companies House for the year ending 28 September 2025, Starbucks UK saw operating losses widen to £29.8m, up from £27.5m in 2024.

This was driven by ongoing input cost inflation and higher wage and benefit costs, including a 7.8% increase in NICs, and one-off costs associated with its store closure programme carried out in September 2025.

However, revenues increased by 5.8% to £556.3m following higher customer transaction volumes and targeted store expansion in priority locations, the coffee chain said. 

Starbucks opened 92 UK new stores in 2025 and now plans to open an additional 500 sites over the next five years. The coffee chain expects the first 75 of these new shops to open in the 2026 financial year.

It comes despite the business operating in a “tougher and more competitive market”, said Starbucks EMEA president Duncan Moir.

“But we’re seeing encouraging progress as we deliver on our Back to Starbucks plan, focusing on the fundamentals of the coffeehouse experience, improving customer service and product consistency, and building stronger digital and loyalty engagement,” he explained.

The Back to Starbucks turnaround plan was launched by Starbucks chairman and CEO Brian Niccol in September 2024 to boost sales and address issues including long waiting times and frustrated staff.

Among the changes, Starbucks unveiled plans late last year to close hundreds of coffee shops and lay off 900 non-retail employees – a move it said was expected to cost around $1bn (£750m) due to severance packages and long-term rental contracts.

While the majority of changes were planned for the US and Canada, the coffee chain confirmed an unspecified number of closures would take place in the UK. In October, 10 UK stores closed, including branches in Ilford, London Bridge station, Balham, Glasgow Exchange Place, Muswell Hill, and Holland Park.